3334-1-14 Termination of tuition payment contracts; other.

(A) In addition to the rights granted to the authority under rule 3334-1-10 of the Administrative Code, the authority may terminate a tuition payment contract and force a reallocation or liquidation of the account, except as otherwise provided in this rule, if the beneficiary has reached the age of twenty eight years. The authority shall provide to account owners having such accounts whose beneficiaries have attained said age, written notice of the proposed termination and advising said account owner that within thirty days following receipt of said notice, the account owner may either reallocate the entire amount in the account under said contract into the Ohio variable college savings program or may agree to said proposed termination and a liquidation of the entire account. If the account owner elects to reallocate, the authority shall determine the amount to be reallocated in an actuarially sound manner. If the account owner elects to terminate the contract and liquidate the account, the refund shall be equal to the current weighted average value of the tuition credits and/or tuition units as applicable as of the date of the request.. In either such event, the refund shall be calculated and disbursed by the authority to the account owner or such other person designated by the account owner not later than fifteen days following the aforesaid thirty day period. If the account owner receives the aforesaid thirty day notice but fails to notify the authority of its election within said thirty day period, then the account owner shall be deemed to have elected to terminate the contract and receive a full liquidation of the account. If the account owner does not receive said notice, then the authority shall proceed in accordance with the provisions of paragraph (B) of this rule.

(B) Notwithstanding the provisions of paragraph (A) of this rule, if the authority is unable to locate the purchaser, then the authority shall make a reasonable effort to locate the purchaser's designated beneficiary and/or any person designated by the purchaser to act on the purchaser's behalf. If the authority is unsuccessful in locating all of such persons, then the authority may terminate the purchaser's tuition payment contract and retain all amounts which would otherwise be payable thereunder. If the authority is able to locate any of such persons, then the authority shall advise such persons that unless the purchaser contacts the authority on or before thirty days from the date that such person receives notice from the authority, the authority will terminate the tuition payment contract of the purchaser and retain all amounts which would otherwise be payable under said contract. If the purchaser does contact the authority within said thirty day period, then the purchaser shall be subject to the provisions of paragraph (A) of this rule.

(C) Notwithstanding anything to the contrary contained in this rule, if the beneficiary has reached the age of twenty eight years but is currently serving in the United States military or is currently attending an eligible education institution on a continuous basis or is subject to other circumstances or conditions which the authority deems sufficient to authorize suspension of the application of either paragraph (A) and/or paragraph (B) of this rule, then the authority , upon receipt of documentation satisfactory to the authority establishing any of the foregoing, shall suspend taking any action under either paragraph (A) and/or paragraph (B) of this rule until such time that the beneficiary is discharged from the military service, discontinues his attendance at an eligible education institution or is no longer subject to the other conditions described above, whichever is applicable. Tuition payment contract account owners seeking suspension under this paragraph (C) shall be required periodically to submit such documentation as the authority may require in order to continue any such suspension in force.

Effective: 08/21/2006
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: R.C. 3334.08 , 3334.09 , 3334.11
Rule Amplifies: R.C. 3334.08 , 3334.09 , 3334.11